The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance of People's Republic of China (PRC) on Business Tax on Equity Transfer stipulates that intangible assets and real estate invest in shares, participate in the profit distribution of investors, and jointly bear the investment risks, and no business tax is levied; No business tax is levied on equity transfer.
It should be pointed out that real estate owners invest in real estate, collect fixed income and do not bear investment risks. This fixed income, whether in the form of investors' profits or in other forms such as rent, is essentially rental income, and business tax should be levied according to regulations.
2. Land value-added tax
The Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Some Specific Issues Concerning the Provisions of Land Value-added Tax stipulates that land value-added tax will be temporarily exempted for those who invest in or join a joint venture with real estate, and when one party of the investment or joint venture invests in land (real estate) as a share or transfers it to the investee or joint venture with real estate as a condition. If the above-mentioned real estate is re-transferred by investment or joint venture, land value-added tax will be levied.
That is to say, if the invested or joint venture uses the invested land for real estate development, not only investors have to pay land value-added tax when transferring the developed real estate, but also investors who invest in land have to collect land value-added tax when investing in land; Land value-added tax is temporarily exempted for investment and joint ventures with real estate, but it does not include real estate development enterprises. If a real estate development enterprise invests or associates with the commercial housing it has built, it shall still pay the land value-added tax as required.
3. Enterprise income tax
Article 25 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that enterprises that exchange non-monetary assets, donate, repay debts, sponsor, raise funds, advertise, sample, employee welfare or distribute profits with goods, property and services shall be regarded as selling goods, transferring property or providing services, unless otherwise stipulated by the finance and taxation department of the State Council. The Notice of State Taxation Administration of The People's Republic of China on the Treatment of Income Tax on Disposal of Assets by Enterprises stipulates that the income from asset sales obtained by enterprises shall be determined according to the external sales price of similar assets of enterprises in the same period; For assets that belong to outsourcing, sales revenue can be determined according to the price at the time of purchase. It can be seen that the exchange of non-monetary assets occurs when enterprises invest in real estate. According to the above provisions, property gains and losses should be calculated and paid enterprise income tax. At the same time, both investors should handle other income taxes according to the corresponding provisions of the income tax law.
4.stamp duty
Article 10 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Interpretation and Provisions on Certain Specific Issues of Stamp Duty stipulates that the taxation scope of "property ownership" transfer certificates is: movable property and immovable property ownership transfer certificates registered by government management organs, and enterprise equity transfer certificates. The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Several Policies of Stamp Duty stipulates that the transfer contract of land use right and the transfer contract of land use right shall be subject to stamp duty according to the transfer of property rights; Commercial housing sales contracts are subject to stamp duty according to the transfer of property rights. Article 28 of the Company Law stipulates that if shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank; Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law. At the same time, Article 27 of the Company Law stipulates that non-monetary property as capital contribution shall be appraised and verified, and the appraised value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail. It can be seen that according to the provisions of stamp duty, real estate investment shares belong to the transfer of property ownership, and stamp duty should be levied according to the tax items of Property Transfer Certificate, and investors should pay stamp duty at the rate of five ten thousandths, and the tax basis is the evaluation price approved by the evaluation agency.
Legal basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Business Tax on Equity Transfer Article 1 Business tax is not levied on the behavior of investing in shares with intangible assets and real estate, participating in the profit distribution of investors and sharing investment risks.
"Regulations for the Implementation of the Enterprise Income Tax Law" Article 25 Where an enterprise exchanges non-monetary assets and makes donations, repayments of debts, sponsorship, fund-raising, advertisements, samples, employee benefits or profit distribution with goods, property and services, it shall be regarded as selling goods, transferring property or providing services, unless otherwise stipulated by the competent department of finance and taxation of the State Council.
Article 10 of the Notice of State Taxation Administration of The People's Republic of China on the Interpretation and Provisions on Certain Specific Issues of Stamp Duty "The scope of taxation of property ownership transfer certificates" is: movable property and immovable property ownership transfer certificates registered by government management organs, and enterprise equity transfer certificates.